Forex Flash: GBP remains the weakest link – Societe Generale

FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that there is a perception that the incoming BoE Governor Carney is a dove has little merit, and GBP looks set to fall further.

Juckes comments that the fallout from Mark Carney's first major public speech since the announcement that he will succeed Sir Mervyn King as Governor of the Bank of England, continued in the weekend press.

He believes that the perception that Mr. Carney is dovish, insofar as he doesn't believe monetary policy is 'maxed out', and his willingness to consider other monetary policy targets than inflation, will fuel sterling-negative sentiment. With EU/UK 2yr rate spreads making new multi-month highs again this morning, EURGBP is heading towards 0.90.